SAP in EC&O

Equipment and Tools

Management (ETM)

Elisabeth Schönfelder-Lück
Solution Management, SAP AG
IBU ADMEC Eng., Construction & Operations
 What is Equipment and Tools Management?

Equipment and Tools Management (ETM) is the

SAP solution for planning, administration,
settlement and performance management of
Equipment and Material
PBE
Document
Shipping Performed Hours
Planning Document

Shipping
Equipment Yard
Requisition
Requisitionnote
note
Equipment Construction
ConstructionSite
Equipmentand
andTools
Tools Site

Site Manager Equipment

Settlement, Cost Allocation
Billing, & Project
Performance
Mgmt.

 SAP AG 2003, Title of Presentation, Speaker Name / 2

 Why Equipment and Tools Management?

Easy shipment of Equipment and Material

Reduction of handling / administration costs

Equipment Location Tracking

Internal cost charging and billing according to

Customer requirements

Flexibility of Price determination

Visibility of Equipment Performance, Profitability

and Utilization

 SAP AG 2003, Title of Presentation, Speaker Name / 3

 SAP Engineering Construction & Operations Solution Map
Suppliers & Decide Strategy Design & Engineering Procurement Construction Operations Customers &
Partners Project Management Channels

Planning & Scheduling

Project Execution
Contract Management
Project Controlling
Business Development
Project Development
Opportunity Management
Design & Engineering
Basic Design
Detail Design & Engineering
Procurement
Sourcing
Requirements Planning and Purchasing
Expediting & Tracking
Build
Site Materials Management
Workforce Management
Equipment & Tool Management
Prefabrication & Assembly
Commissioning/Startup/Handover

Facility & Plant

Operations
Marketing & Sales
Facility/Plant
Maintenance
Real Estate
Management
Service Operations
Enterprise Management & Support
 SAP AG 2003, Title of Presentation, Speaker Name / 4
 ETM is the “Door Opener” in Construction Companies
Suppliers & Decide Strategy Design & Engineering Procurement Construction Operations Customers &
Partners Channels
Project Management
Planning & Scheduling
Project Execution
Contract Management
Project Controlling
Business Development
Project Development
Opportunity Management
Design & Engineering
Basic Design
Detail Design & Engineering
Procurement
Sourcing
Requirements Planning and Purchasing
Expediting & Tracking
Build
Site Materials Management
Workforce Management
Equipment & Tool Management
Prefabrication & Assembly
Commissioning/Startup/Handover

Facility & Plant

Operations
Marketing & Sales
Facility/Plant
Maintenance
Real Estate
Management
Service Operations
Enterprise Management & Support
 SAP AG 2003, Title of Presentation, Speaker Name / 5
 Terminology

Time
Time Based
Based Equipment
Equipment

Example • Billing according to usage on site

- Cranes • Individual Stock

Performance
Performance Based
Based
Equipment
Equipment

Example Billing according to counter readings

- Excarvators • Individual Stock

Multi-Part
Multi-Part Equipment
Equipment
• Billing or Sale and buy back
Example • No Individual Stock
- Formwork
- Scaffolding

Material
Material ((consumable
consumable and
andnon-
non-
consumable
consumable materials)
materials)

Example • Sale and buy back

- Nails, Bolts • No Individual Stock
- Drilling Maschines
- Screwdrivers

 SAP AG 2003, Title of Presentation, Speaker Name / 6

 ETM Supported Business Processes

Equipment Rental

Internal Rental

External Rental (e.g. Joint Venture)

Selling, re-purchase and shipping of

consumable and non-consumable material
and goods

 SAP AG 2003, Title of Presentation, Speaker Name / 7

 SAP EC&O – Equipment Management Solution (I)

Target Segments

Any company that needs to handle

equipment e.g.

Ports Construction
Companies
Equipment
Manufacturers Communities Airports

 SAP AG 2003, Title of Presentation, Speaker Name / 8

 SAP EC&O – Equipment Management Solution (II)

Involved Parties
Recipient
• Reports requirements
• Pays rental fee
• Buys and sells back tools and materials

Equipment Manager
• Leases Equipment from owner
• Maintains the Equipment
• Plans requirements, manages stocks
• Rents equipment and charges recepient

Owner
• Purchasing and Insurance
• Equipment as Asset
• Depreciation posting

 SAP AG 2003, Title of Presentation, Speaker Name / 9

 SAP EC&O – Equipment Management Solution (III)

Business Process – Logistical Part

Requisition Note specifies the required equipment

Hit list of suitable equipment based on the specification of the requisition note

Availability of equipment? – Confirmation or Rejection

Shipping of Equipment (Shipping Document – TBE)

Recording of worked hours etc. (Performance Based Document - PBE)

PBE
Document

Shipping
document
1. 2. 3.
Requisition note
Availability? Recipient, e.g.
Requirement from
Equipment Construction site
Site Manager
Manager

 SAP AG 2003, Title of Presentation, Speaker Name / 10

 SAP EC&O – Equipment Management Solution (IV)

Business Process – Settlement part (Example: Joint Venture)

Equipment Manager leases equipment from Owner

Equipment Manager rents equipment to site manager

Equipment Manager sends invoices on behalf of the site manager to Debtor/Lender

Debtor/Lender will pay the invoices

Owner Equipment Site Manager Debtor/Lender

Manager /Project

Lease 700,- Rent 2.000,- Rent ext. 3000,- Invoice 3000,-

Deprec. -300,- Lease -700,- Rent intern -2000,-

Profit 400,- Profit 1.300,- Profit 1000,-

 SAP AG 2003, Title of Presentation, Speaker Name / 11

 Shipping and Tracking: Roles and Responsibilities

Due to the structural and legal requirements of Construction

Companies multiple Company Codes exist with different Roles
and Responsibilities
Equipment Owner
Roles and Responsibilities

Equipment belonging to the

Owner

Administrator is responsible for

planning and usage of Administrator Equipment
equipment Administrator

Construction Site Manager

Construction Site
orders the equipment from the
Administrator to be used on Site Manager
construction sites/ projects

Customer - Lender

Customer. Uses equipment in
case of external rental

 SAP AG 2003, Title of Presentation, Speaker Name / 12

 Equipment Rental: Process Flow

Create Requisition note (optional)

Equipment
Recipient
Construction site

Confirmation of requirement (optional)

Administrator Shipping- / PBE document

Handling of equipment and material

Periodic settlement

Periodic billing

 SAP AG 2003, Title of Presentation, Speaker Name / 13

 SAP EC&O Equipment Management

Processes

 SAP AG 2003, Title of Presentation, Speaker Name / 14

 (I) External Rental: Value Flow

Deprecation cost
Asset Maintenance cost Revenue rental

Owner / Administrator
Equipment

Internal Billing External Billing

Cost rental Revenue rental Cost rental
Cost loading Revenue loading Cost loading
Cost provision fee Revenue provision fee Cost provision fee

Recipient Debtor

 SAP AG 2003, Title of Presentation, Speaker Name / 15

 I) External Rental: Complete Process

Process flow

Warehouse Recipient Debtor

Equipment
Administrator Site location of Recipient
Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender Asset Recipient

Periodically deprecation 80

Cost center PM Order WBS Element Debtor

Cost deprecation 80
Revenue rental 100 Cost rental 100
Cost rental 120
Revenue rental 120
Revenue loading 10 Cost loading 10
Cost loading 15
Revenue loading 15
Revenue provision fee 20 Cost provision fee 20
Revenue provision fee 25 Cost provision fee 25

 SAP AG 2003, Title of Presentation, Speaker Name / 16

 (II) Internal Rental: Value Flow

Deprecation cost
Maintenance cost
Asset Revenue rental

Owner / Administrator
Equipment

Internal Billing
Cost rental
Cost loading
Cost provision fee

Recipient

 SAP AG 2003, Title of Presentation, Speaker Name / 17

 (II) Internal Rental: Complete Process

Process flow

Warehouse Recipient
Equipment
Administrator Site location
Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender Asset Recipient

Periodically deprecation 80

Cost center PM Order WBS Element

Cost deprecation 80
Revenue rental 100 Cost rental 100

Revenue loading 10 Cost loading 10

Revenue provision fee 20 Cost provision fee 20

 SAP AG 2003, Title of Presentation, Speaker Name / 18

 (III) Sales and repurchase of non consumable
material
Shipment of material

Material Material

Warehouse Recipient A Recipient B

Shipping document Shipping document Site location
Site location

Periodical settlement with cost allocation

Cost center WBS element WBS element
Material sales
Revenue 100
Cost 100

Material repurchase

Cost 80 Revenue 80

Material sales

Revenue 100 Cost 100

 SAP AG 2003, Title of Presentation, Speaker Name / 19

 IV) Consumable material

Shipment of material

Warehouse Recipient A
Shipping document
Site location

Cost allocation (automatical goods movement with shipping)

Warehouse inventory WBS element

Cost

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 ETM Additional Functionalities

 Owner / Administrator Structure

 Catalogue / Bill of Material
 Graphical Planning Board
 Shipping Packages
 Settlement calendar
 Own Posting roles / Account Determination
 EDI (cross company settlement)
 Workflow Availability
 Reporting
 Inventory
 Archiving

 SAP AG 2003, Title of Presentation, Speaker Name / 21

 Summary

SAP EC&O provides a solution for

equipment management, covering
 Internal Rental

 Joint Ventures

 Materials and Tools

Major Benefits
 Providing detailed information to your
equipment

 Visibility of costs, revenues, down times,...

 Better availability, improved utilization and

reduced maintainance cost

 SAP AG 2003, Title of Presentation, Speaker Name / 22

 ETM Customer List

Max Bögl, German
Empreiteiros Casais, Portugal

Leonard Weiss, German
FCC, Spain

Wolff & Müller, German
Cape Industry Services, UK

Hünnebeck, Germany

Impregilo, Italy

Precision Drilling, Canada

Cegelec, France

Nohl, Germany

Royal Bam, Netherlands

Oevermann, Germany

Meci-Ensul, Portugal
Mammoet, Netherlands

Mota-Engil, Portugal
…….

Teixeira Duarte, Portugal

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